It’s hot, humid and close to the bay where I live and I have a lot of problems with my tools rusting. In particular things like driver bits, smoothing planes and any exposed steel on power tools like drills and impact drivers (chucks, collets etc). I have tried lanolin but it does not seem to last long. Does anyone have any suggestions for keeping the rust away?
Sounds like you live in a similar environment to me near salt water. I've found Inox MX3 spray to be very effective at keeping rust at bay. I keep a piece of cloth soaked in it in a jar and just give tools a quick wipe afterwards before putting them away. For some tools like spanners etc I keep them in a drawer with a piece of light felt underneath that is sprayed periodically as well. The Inox seems to stay fluid rather than evaporating off like some other sprays.
I used to have the same problem. I put the moisture absorbing capsules you find in dried food in to my toolbox, which got rid of the problem. I think you can also buy them in supermarkets as crystals?
Why not all 3 -
Kill it with a proper rust converter like Fertan or Chemtech (not Rainex etc, the phosphoric acid based ones are poxy compered to the tannic acid based ones, use what pro fisho's use. Fertan 
)
Then wash, spray all with a light machine oil and fish oil (WD40 not far off)
Then also keep them all in a cabinet with a moisture absorber, the ones in a mini bucket from the hardware store.
If they rust I will send you $100.
Inox/wd 40, penetrate lube spray is ok on hand tools etc, but not power tools, it's an attractant which causes failures in power tools working parts, it's ok to spray your chuck but not the tool, silicone spray is what I was advised to use around power tools
It could also be your own hands causing the problem. Some people have very acidic hands which can cause the metals you are handling to go rusty so oiling the hands before using could help.
Select to expand quoterockmagnet said..
It could also be your own hands causing the problem. Some people have very acidic hands which can cause the metals you are handling to go rusty so oiling the hands before using could help.
Funny you should mention that, my hands seem to melt certain plastics, like my binoculars and my electric tooth brush and my mouse, They all have soft grip type plastic, My wife has the same tooth brush and mouse and no problem ??? Although I did read that DEET may be the cause.
Anyhow,,,,, sorry for the hijack, all my tools rust, actually everything rusts around here but the beach is just there, 50m away it's all about maintenance and keeping up with the sprays, even in my workshop 10km inland if I forget to spray cast surfaces they rust in a matter of weeks, at least hand tools are OK there.
My tool is getting a bit rusty of late not having been used in earnest for the last five years. A good rubbing in with KY keeps the tubes clear though. 
Redcliffe is good for wind, bad for tools. Slow down the air movement around them, eg, keep in a cupboard or draw rather than on a shelf, I have an old filing cabinet for power tools and a tool chest for hand tools.
Expensive stuff is kept in pelican cases ( cheap ones from Bunnings) with some of that clear cat litter, it is desiccant and absorbs moisture. I just fill a jar, drill some holes in the lid and put them in the draws, cupboards or cases with the tools. Put the desiccant in the oven once a year to dry it out.
Select to expand quoterockmagnet said..
It could also be your own hands causing the problem. Some people have very acidic hands which can cause the metals you are handling to go rusty so oiling the hands before using could help.
Known as "rusty fingers" A bit of a pain if you work in a machine shop. Barrier hand creams are recommended in this case. I find people usually go through it at some stage and grow out of it. I have seen finger prints etched into expensive measuring equipment.
Ballistol 
